i had a iva, but it failed, so i went down the route of bankrupty, i keep my house / mortgage, i wanted to sell my house but found out there was a restriction on my property left on from the iva, so i had to pay the the proceeds to the iva company to get the restriction removed so the sale would go through, is this correct as i went bankrupt, thanks

Hi Nigel. The house would have been an asset of the IVA but should, I would have thought, been released when the IVA failed. Unfortunately our industry experts will not probably see this until tomorrow, so I hope you can get an informed reply then.

I'm not aware of any legal position as to who has to pay but if there are no funds in the case for the O.R/Trustee to pay to have the caution removed and you have been given your property back it seems reasonable that if you want the restriction removed you would have to pay for it, plus any legal cost associated with disclaiming the Trustee's interest.

You should have had legal advice about this. Usually when an IVA is terminated the 'trust' is severed but if has not happened then the property restriction would remain and the property captured by the IVA. I have seen this happen before but I would have thought the bankruptcy order would have severed the trust even if the IVA failure had not.

You should have had legal advice about this. Usually when an IVA is terminated the 'trust' is severed but if has not happened then the property restriction would remain and the property captured by the IVA. I have seen this happen before but I would have thought the bankruptcy order would have severed the trust even if the IVA failure had not.

You should speak to the former IP and ask them on what grounds the equity was captured by the IVA. If your IVA was covered by the R3 standard terms and conditions the trust survives termination but I do not think this applies to protocol IVAs. If your previous IP had petitioned for your bankruptcy this could have severed the trust but if you or another creditor raised the petition then the trust way well have continued.

Your former IP may indeed be correct but you are entitled to ask the questions. You could also consider legal advice but this could be expensive and may not be worth it depending on how much equity was released after the sale.

You should speak to the former IP and ask them on what grounds the equity was captured by the IVA. If your IVA was covered by the R3 standard terms and conditions the trust survives termination but I do not think this applies to protocol IVAs. If your previous IP had petitioned for your bankruptcy this could have severed the trust but if you or another creditor raised the petition then the trust way well have continued.

Your former IP may indeed be correct but you are entitled to ask the questions. You could also consider legal advice but this could be expensive and may not be worth it depending on how much equity was released after the sale.

I believe that, following on from the N T Gallagher & Son Ltd [2002] case, the trust survives in Protocol cases as well. I gather this was the arguement used previously by Mel, some time ago.